Middlesbrough Council Tenant Referencing — The Mandatory Service for Licensed Landlords

Most landlords in England choose their own tenant referencing provider. In Middlesbrough's Newport selective licensing areas, you do not get that choice. Using Middlesbrough Council's free tenant referencing service is a mandatory condition of the selective licence — and skipping it, or using a private agency instead, is a breach that can trigger a penalty of up to £40,000.

How the Service Works

The service is free and run directly by the council. Here is the process:

1. Sign up as a landlord. Complete the council's online Landlord Membership Form to register for the service.

2. Each prospective tenant applies. The prospective occupier fills out an online application giving three years of residential housing history and disclosing any anti-social behaviour records.

3. The council issues a traffic-light rating:

   • Green — clear housing history, no rent arrears or ASB issues
   • Amber — minor tenancy issues, minor historic arrears, or no prior rental history
   • Red — documented serious anti-social behaviour, active eviction proceedings, or significant rent arrears

4. You receive the report. The council sends you a written reference for each prospective tenant.

Do You Have to Refuse a "Red" Tenant?

No. The traffic-light rating is informational, not binding. You are legally free to offer a tenancy to someone who receives a red rating. The condition requires you to obtain the reference and keep it on file — not to act on it in any particular way.

That said, if a tenant with a red-rated history then causes anti-social behaviour problems, the council may ask what steps you took in response to the reference. Having the documentation shows you were aware of the risk and made a considered decision.

Record-Keeping Requirements

You must retain all written reference reports for the full duration of the licence term. Copies must be provided to the council within 14 days of a formal written demand.

This is not optional. Failure to retain or produce these references constitutes a breach of licence conditions. If the council asks for a reference and you cannot produce it — because you never obtained one, or because you lost the paperwork — you are in breach.

Why Not Use a Private Referencing Agency?

You can use a private agency in addition to the council service, but you cannot use one instead of it. The selective licence condition specifically requires references to be obtained through Middlesbrough Council's service. A private referencing report from a commercial provider does not satisfy the condition.

Landlords who manage properties in other areas outside Middlesbrough and are used to their usual referencing provider sometimes miss this. The council's requirement applies only to properties in Newport 1 Phase 2 and Newport 2 — once the selective scheme expires or if the property is outside the designation, there is no mandatory referencing obligation.

What About HMO Licence Holders?

The mandatory tenant referencing condition applies to selective licences in Newport, not to mandatory HMO licences. HMO licence holders are not required to use the council's referencing service, though there is nothing stopping them from doing so. HMO licence conditions focus on room sizes, amenity standards, and fire safety rather than tenant screening.

For a full breakdown of all selective licence conditions — including the referencing requirement, anti-social behaviour duties, and certificate renewal schedules — see our Middlesbrough Landlord Licensing Guide.

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